South Australia Treasurer Kevin Foley has approved the development of the $130m Kanmantoo copper-gold mine in Australia.

Australia’s Hillgrove Resources will operate the mine, which is 55km east of Adelaide, close to Callington.

Hillgrove will begin a mining and rehabilitation programme for the mine, which will be the company’s flagship operation.

Kanmantoo is said to have 191,100oz of gold, 3.3 million ounces of silver and 292,200t of copper and will have an expected annual production capacity of 8,000oz of gold and 17,000t of copper in concentrate.

Construction work is scheduled for completion in the first quarter of 2011.